News Corp is in advanced talks with the big digital platforms, seeking payment for use of its content to train AI.
Media groups have flagged the use of their content and they want to be compensated.
CEO Robert Thomson revealed during a briefing of analysts the state of negotiations to maximise the value of premium content for Generative AI.
“We are in advanced discussions with a range of digital companies that we anticipate will bring significant revenue in return for the use of our unmatched content sets,” he says.
“Generative AI engines are only as sophisticated as their inputs and need constant replenishing to remain relevant. And we are proud to partner with responsible purveyors of AI products and their prescient leaders.
“One observation about generative AI: we often hear about misinformation and disinformation to the point where the very words have become politicised and polluted.
“The potential for the proselytising of the perverse will become evermore real with the inevitable, inexorable rise of artificial intelligence.
“However artful the artificial intelligence it is no match for great reporting and for genuine journalistic nous.”
Market analysts are upbeat on the negotiations and the possibility of flow on to the rest of the industry
"If a successful deal around payment for content is reached, we believe it is likely to be beneficial for the broader industry peers (including Nine and Seven West Media)," say UBS analysts.
"We note the Australian government enacted the News Media Bargaining Code in 2021 which saw Google and Facebook reach commercial agreements to pay ... for use of their content (high margin revenues)."
The size of the opportunity will be subject to a lot more negotiation.
The payout from the platforms for using premium news has been sizeable. One report put News Corp's cut at $100 million.
In Australia, Nine entertainment is also actively seeking compensation from platforms using its content to train AI.
“There's no doubt that major platforms, given the open nature of our content, would have in some way accessed our content,” Nine CEO Mike Sneesby told a briefing following the media group’s AGM
“And the conversations in terms of opportunities to reach agreement around that are very early stage.”
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